The happiness of gold investors did not last long after the precious metal suffered a severe slide after the Federal Reserve (Fed) said it would continue to raise interest rates next year.
During the Asian session, gold traded steady at around $1,780 an ounce after falling from a six-month high of $1,824 an ounce on Tuesday to $1,773 an ounce on Thursday.
The US central bank raised interest rates by 50 basis points as expected, but Chairman Jerome Powell's statement that interest rates will remain higher for a long time has boosted gold investments.
He said, although recent inflation data shows a decline, the Fed needs more evidence to give confidence that it is on a continuous downward path.
This at the same time supports the trading of the US dollar to rise again and the yellow gold metal erases the gains made when the inflation data of the United States was released.
Meanwhile, central banks in Europe on Thursday also followed the Fed in slowing interest rate hikes and offered the same message that they will continue to tighten policy even as economic performance deteriorates.
